Veracyte (NASDAQ: VCYT) and Digiliti Money Group (OTCMKTS:DGLT) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Institutional and Insider Ownership

69.2% of Veracyte shares are held by institutional investors. Comparatively, 11.3% of Digiliti Money Group shares are held by institutional investors. 13.4% of Veracyte shares are held by insiders. Comparatively, 50.9% of Digiliti Money Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Veracyte and Digiliti Money Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veracyte 0 2 3 0 2.60
Digiliti Money Group 0 0 1 0 3.00

Veracyte currently has a consensus price target of $12.50, suggesting a potential upside of 94.10%. Digiliti Money Group has a consensus price target of $6.00, suggesting a potential upside of 3,650.00%. Given Digiliti Money Group’s stronger consensus rating and higher probable upside, analysts clearly believe Digiliti Money Group is more favorable than Veracyte.

Profitability

This table compares Veracyte and Digiliti Money Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veracyte -38.19% -52.99% -29.50%
Digiliti Money Group -147.73% N/A -199.21%

Risk and Volatility

Veracyte has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Digiliti Money Group has a beta of -0.66, meaning that its share price is 166% less volatile than the S&P 500.

Valuation & Earnings

This table compares Veracyte and Digiliti Money Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veracyte $65.08 million 3.37 -$31.35 million ($0.81) -7.95
Digiliti Money Group $7.97 million 0.20 -$15.16 million N/A N/A

Digiliti Money Group has lower revenue, but higher earnings than Veracyte.

Summary

Veracyte beats Digiliti Money Group on 7 of the 12 factors compared between the two stocks.

Veracyte Company Profile

Veracyte, Inc. is a genomic diagnostics company. The Company uses genomic technology to resolve diagnostic ambiguity. It targets diseases in which patients undergo invasive diagnostic procedures. Its products combine genomic technology, clinical science and machine learning. The Company commercializes over three genomic tests, which are transforming the diagnosis of thyroid cancer, lung cancer and idiopathic pulmonary fibrosis. The Company’s commercial solution, the Afirma Thyroid fine needle aspiration (FNA) Analysis, centers on the Afirma Gene Expression Classifier (GEC). The Afirma GEC is offered directly or as part of a solution that also includes cytopathology. The Company operates in the pulmonology diagnostics market. It offers Percepta Bronchial Genomic Classifier, a genomic test to resolve ambiguity in lung cancer diagnosis. It also offers the Envisia Genomic Classifier, which is designed to help in the assessment of patients suspected to have idiopathic pulmonary fibrosis.

Digiliti Money Group Company Profile

Digiliti Money Group, Inc., formerly Digiliti Money, Inc., is a technology solutions and services provider to the financial services industry. The Company’s solutions and services enable its clients, such as banks, credit unions and alternative financial services providers (AFS) to offer their customers remote deposit capture (RDC) and prepaid mobile money technologies and related services. It offers RDC products for businesses and consumers; mobile money management products for consumers, and training and support services for its financial services industry customers. The RDC products are offered to banks and credit unions in the United States, Canada and Latin America. Its mobile money management products are offered to traditional financial institutions (FIs), as well as AFS in the United States, Canada and Latin America. These FIs and AFS providers include banks, credit unions, prepaid card issuers, check cashers and payday lenders.

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